Cornish Metals Enters Agreement to Sell a 1% NSR Royalty on the Sleitat Tin-Silver Project in Alaska to Electric Royalties Ltd
VANCOUVER, March 10, 2022 - Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the "Company"), a mineral exploration and development company focused on its tin/copper projects in Cornwall, United Kingdom, is pleased to announce that it has reached an agreement, through a wholly-owned subsidiary of the Company, to sell a 1% Net Smelter Returns Royalty (NSR) on its Sleitat tin-silver project in Alaska to Electric Royalties Ltd. (TSX-V:ELEC / OTCQB:ELECF) for the following consideration:- 1,000,000 common shares of Electric Royalties Ltd. ("Consideration Shares")
- CDN$100,000 cash
Upon issuance at closing of the transaction, the Consideration Shares will be subject to a voluntary lock-up agreement whereby 50% of the Consideration Shares will be subject to a six month hold period and the balance subject to a one year hold period.
The completion of the transaction noted herein is subject to completion of due diligence, approval of the TSX Venture Exchange and other customary conditions.
ABOUT CORNISH METALS
Cornish Metals completed the acquisition of the South Crofty tin and United Downs copper / tin projects, plus additional mineral rights located in Cornwall, UK, in July 2016 (see Company news release dated July 12, 2016). The additional mineral rights cover an area of approximately 15,000 hectares and are distributed throughout Cornwall. Some of these mineral rights cover old mines that were historically worked for copper, tin, zinc, and tungsten.
The South Crofty project covers the former producing South Crofty tin mine located beneath the towns of Pool and Camborne, Cornwall. South Crofty mine closed in 1998 following over 400 years of continuous production. Since acquiring the project in 2016, Cornish Metals has completed and published maiden NI 43-101 Mineral Resources for South Crofty using the vast archive of historical production data and more recent drilling completed between 2007 and 2013. In 2017, Cornish Metals completed a Preliminary Economic Assessment that demonstrated the economic viability of re-opening the mine. Additionally, Cornish Metals has undertaken extensive pilot-scale water treatment trials and successfully applied for and received the necessary environmental permits to abstract, treat and discharge mine water in order to dewater the mine. Planning permissions for the operation of the mine and re-development of the surface facilities have been secured and construction of the water treatment plant foundations commenced. The dewatering pumps, variable speed drives and new high-voltage power supply have been delivered to site.
An updated Mineral Resource was completed in June 2021 as summarised below:
| South Crofty Summary (JORC 2012) Mineral Resource Estimate | ||||||
| Area | Classification | Mass ('000 tonnes) | Grade | Contained Tin / Tin Equivalent ('000 tonnes) | Increase in contained Tin / Tin equivalent from 2016 MRE | |
| Lower Mine | Indicated | 2,084 | 1.59% Sn | 33 | 10.2% | |
| Inferred | 1,937 | 1.67% Sn | 32 | 129.8% | ||
| Upper Mine | Indicated | 277 | 1.01% SnEq | 3 | 9.5% | |
| Inferred | 493 | 0.93% SnEq | 5 | 8.0% | ||
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams, P.Geo
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information pursuant to Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution regarding forward looking statements
This news release contains "forward-looking statements". Forward-looking statements, while based on management's best estimates and assumptions at the time such statements are made, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: completion of this NSR royalty sale transaction, risks related to receipt of regulatory approvals, risks related to general economic and market conditions; risks related to the COVID-19 global pandemic and any variants of COVID-19 which may arise; risks related to the availability of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities; possible variations in Mineral Resources or grade; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations.
Although Cornish Metals has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cornish Metals undertakes no obligation or responsibility to update forward-looking statements, except as required by law.
For additional information please contact: In North America: Irene Dorsman at (604) 200 6664 or by e-mail at irene@cornishmetals.com SP Angel Corporate Finance LLP (Nominated Adviser & Joint Broker) Tel: +44 203 470 0470 Richard Morrison Charlie Bouverat Grant Barker Hannam & Partners (Joint Broker) Tel: +44 207 907 8500 Matthew Hasson Andrew Chubb Ernest Bell BlytheRay (Financial PR/IR-London) Tel: +44 207 138 3204 Tim Blythe tim.blythe@blytheray.com Megan Ray megan.ray@blytheray.com